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Almost all (99%) of commercial property professionals who were surveyed agreed that the use of data enrichment would “add value” to their business.

But whilst the majority are rooting for a property data exchange to share claims, policies and past property claims, only 57% said that their business would be “very” (26%) or “somewhat likely” (31%) to contribute to a shared database.

The data aggregation firm suggested that those working for larger commercial property insurance providers (83%) are more likely to expect data enrichment and contributory databases to deliver “significant value” compared to 64% for smaller firms.

The firm’s white paper published this month focused on changing attitudes towards commercial property data exchange surveying 77 commissioned individuals in the commercial and insurance property sector on their views of different data types.

64% of respondents said their “appetite for data” is greater than the past, with 54% agreeing that an industry-wide contributory database for past policy data would be “very useful.”

It found that over half (53%) thought that an industry-wide contributory database for past policy data would be “very useful” or “extremely useful.”

Almost all (99%) of commercial property insurance providers surveyed use location-based data to support quotations and underwriting for flood (56%), fires (46%), crime/theft (36%) and subsidence (31%).

In relation to each risk type how location data was used varied. With flood risks, it was used most at the point of quote (49%), with fire risks it was popular in underwriting (57%) and this was the case also with subsidence risk (56%). But location data was used the most in crime or thefts (71%). LexisNexis Risk Solutions suggested that commercial property insurers appreciated the “value of perils data across various customer touch points.”

Nearly three quarters (74%) admitting they used past policy data such as mid-term cancellations to support both quoting and underwriting.

Commercial markets director Jonathan Guard at LexisNexis Risk Solutions, UK and Ireland, said commercial property insurers are already utilising their own customer policy history and claims data and therefore this is the “natural next step.”

“The solution would be a contributory database that delivers so much value that it would alleviate concerns over sharing their own data,” he said.

”We found that personal lines insurance providers shared these doubts until they tested contributory databases and saw how much the benefit outweighed their concerns.

”With recent reports highlighting how the commercial insurance industry is facing challenges in respect of intangible risks[i] it makes sense for commercial property insurers to collaborate and leverage data to help mitigate the tangible property risks they underwrite.”

He explained that contributory databases are already in common use in the personal lines market with 90% of the motor insurance market contributing to the No Claims Discount Module.

But he pointed out that “data sharing is a relatively new concept in commercial insurance” which he said was reflected in the response of “how ready and willing” insurance providers were to share claims and policy data.

Guard added: “There is a clear recognition among commercial property insurance providers of the potential value that contributory databases could deliver, such as data accuracy, efficiency and identifying blind spots in commercial risk, but there still seems to be some caution when it comes to sharing their own business data.

“Perhaps we should not be surprised, as data is hugely valuable to insurance providers, so both an eagerness to obtain more of it and a reluctance to share it are understandable responses.”

But Guard also mentioned: “A shared claims and policy history database would benefit all who contribute, but there will still be plenty of scope for insurance providers to use data and analytics to differentiate themselves and prosper in this dynamic, ever-evolving part of the insurance industry.”

These findings build on the previous 2016 study which found 86% of commercial property insurance specialists thought use of data and analytics would “drive and transform data.”